Rabobank slashes hopes for sugar prices
Published: 02/01/2018, 5:10:36 PM
Rabobank slashed hopes for sugar prices with the bank cutting its forecast for quarter-average prices by up to 1.4 cents a pound, although leaving them largely above the level that investors are factoring in, according to Agrimoney.
For instance, the 15.0 cents-a-pound expected for the last three months of 2018 was well above the 14.18 cents a pound October futures were priced at on Wednesday, although only marginally above the value of the March 2018 contract.
"Crop prospects have improved, and there remains no major reaction to low prices outside of Brazil," Rabobank said, adding that it was "hard to see production going down significantly in the immediate future" given the prospect of further strong beet sowings in Europe and upbeat Asian prospects.
Indeed, La Nina, while a threat to Argentine row crops and US southern Plains wheat, "is likely to bring above-normal moisture to South East Asia.
"We expect only weak upside [price] pressure from this point."